Grid Finance

garrettod

Hi,

Grid has been discussed briefly a few times across various threads, but doesn't seem to have a dedicated discussion thread, so I thought I'd start one so it could become a point of reference etc.

What are peoples views on Grid Finance ?

Personally, I like it.

I like the fact that you can submit a bid within a specified time limit, rather than a simple first come first served scenario. It allows a little time to research the borrower if you want to, or consider the proposed loan without feeling rushed, or needing to have an autobid system etc.

I also like the fact that you can set your lending rate, when you bid. Granted, that doesn't guarantee that your proposed loan will succeed, but it allows you to dictate your lending rate, rather than the website. As other bidders offer loans at lower rates, it brings the average rate down and obviously puts your offer at risk of not progressing, but you can then decide whether to reduce your rate if you wish (up until the loan cut off time).

Finally, while the credit grading system appears fairly basic (I've no idea how it works, but it's a simple A, B, C type rating system), I feel the grades seem to reflect my view of the risk profile of each borrower a little better than I'm seeing on another P2P site.

I know Grid don't have as many borrowers on their website as some other P2Ps, but as I type this, they currently have three loans on offer (incl one to an accountants practice). I think there has been a notable pick up in the amount of loans on offer on Grid over the last 6-9 months, but will admit that historically, Grid have not had a lot of loans to offer compared to another Irish P2P site.

garrettod

Hi,

Just for those who have previously mentioned Grid not having enough loans available on other discussion threads, there's currently six loans up on Grid (and none on LF !)

Grid have also recently issued a questionnaire to existing lenders, hopefully it won't lead to any negative changes on their platform.

garrettod

From: Grid Collections (by email)

Re: Music Vault

Date: 24 May 2018


By way of update we have been following up on missed payments with the Borrower to be advised by email they are ceasing trading and liquidating their operation. We have sought material engagement with them to discuss this matter as the application made to us showed no signs of distress, capacity to repay and the purpose of the loan was to secure finance for a new premises to allow the business grow beyond its previous capacity, the new premises was opened.

We have personal recourse (guarantee) here as they operated as a sole trader. We have already instructed solicitors to demand repayment & progress claim notice in order to protect the lenders position given lack of engagement from the Borrower and the reasons outlined. We will provide further updates in due course and will hopefully get engagement and repayments from this method.

GRID COLLECTIONS TEAM

While I wasn't overjoyed to read the above email when it arrived, at least it's good to see that Grid are on top of it....

There's a lesson there for other P2P websites, when it comes to taking a proactive approach towards dealing with borrowers who don't appear to play by the rules.